5x vs 5x: What Happens During a Wick?
So I wanted to compare the SAME thing:
5x SOL leverage
$1,000 collateral
$100 SOL entry
$5,000 position
But two different liquidation designs.
Typical DeFi liquidation:
$SOL wicks down hard → liquidation trigger → collateral gets sold into the market.
The problem?
If that wick comes with thin liquidity or a distorted DEX price, you can be forced to sell at exactly the wrong moment.
@NolusProtocol :
$SOL wicks → EMA-based trigger filters the single-tick move.
If liquidation is still triggered, MAG checks the actual liquidation output.
If the market is too distorted and the minimum acceptable outcome can't be met:
→ liquidation pauses
→ position stays open
→ market can recover
→ liquidation can be cancelled if the position becomes healthy again
That is the interesting part.
Same 5x leverage.
Same $1,000 collateral.
Same SOL exposure.
Different liquidation logic.
A wick doesn't automatically become permanent damage.
And Nolus doesn't claim MAG removes liquidation risk.
It protects against a different risk:
being forced to liquidate because the market temporarily stopped giving you a fair price.
Leverage isn't just about how much you can borrow.
It's about what happens when the market gets ugly.
5x that survives the wick > 5x that gets liquidated into it.